Housing Enterprise Zone Program
Procedures for requesting a Replacement Tax Credit Certificate in the name of the
buyer of the credits at Project Completion. Projects in qualified Brownfield or Blighted
areas are eligible to transfer or sell credits and must be certified by the local
Projects requesting to be considered in a Brownfield or Blighted area must have
the local EZ Commission confirm their status to IDED that they conform with
Section 403.17 of the Code and be placed on the waiting list before a replacement
certificate can be issued. Iowa law requires a replacement tax credit certificate be
used by any buyer filing for the credits. The local Enterprise Zone commission or
City officials must send a request to IDED for the project to be placed on the
waiting list and that it conforms with section 403.17 of the Code.
The following must be done at project completion to transfer the credits.
1) At project completion send a letter requesting the certificate, the amount
requested, and the complete name and address, tax ID of the purchasing entity
and a copy of your original tax credit certificate to;
Iowa Department of Revenue
PO Box 10460
Des Moines, Iowa 50306-0460
Be sure to include your HEZ project name and agreement number.
Send a copy of the letter electronically to;
And/or a hard copy to;
Iowa Department of Economic Development
200 East Grand
Des Moines, Iowa 50309
2) The following must also be sent to Julie Lunn at IDED;
-A copy of the Certificate of occupancy or equivalent documentation (to certify
-The CPAs or applicants calculation of the amount of Tax Credits requested.
-The original tax credit certificate so we can void it, before issuing the replacement.
The certificates can usually be issued within 30 days of receipt of all information. For
more information contact Julie Lunn at (515) 725-3082. A sample calculation of tax
credits is located on page two of this attachment. (See page two for credit calculation)
Sample Calculation of tax credits
Projects asking for a replacement certificate must declare they have earned the amount
of tax credits awarded or supply a calculation outlining the amount earned.
Total eligible project costs, less other tax credits, Grants, or Forgivable Loans. (or any
costs not covered by the applicants) gives you the total eligible costs X 10% = the
amount of tax credits the project may request at project completion.
The credit amount is 10% of eligible costs up to a maximum of $ 14,000 per unit (a
project with 4 units would have a maximum credit amount of $ 56,000).
Projects that have commercial space must separate the non-housing costs from the
calculation of the credits.
Federal Sect. 42 Low income Housing tax Credit projects have a different set of
instructions to follow to get a “replacement certificate”. Please request it from
Julie Lunn at IDED.